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Transcript of The Birth
Elements that leads to Coca-Cola’s HRM Success
Localize talents, strategy
Success and Challenges
in Asian Ccountries
Marketing Communication Strategy
Marketing in Asia
In a little shop in Atlanta, Georgia (USA), pharmacist Dr John S Pemberton created the first Coca-Cola beverage in 1886
Dr. Pemberton curiosity led him to create a distinctive tasting soft drink that could be sold at soda fountains all across the world.
Coca-Cola was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.
Frank Robinson, Pemberton's bookkeeper, first scripted "Coca Cola" into the flowing letters which has become the famous logo we see today.
In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300.
By the late 1890s, Coca Cola was one of America's most popular fountain drinks, largely due to Candler's aggressive marketing of the product.
The Coca Cola Company produces over 500 brands, in over 200 countries!
The Coca Cola Company continues to be based in Atlanta, USA.
Coca-Cola is the the world's leading manufacturer, non-alcoholic beverage.
Under Mr. Candler's leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta.
Thanks in part to the USA government, by 1943, Coca-Cola had gone international
when the USA government requested that his forces be supplied with 3 million bottles of Coke
Coca-Cola is truly a global company.
It can be seen anywhere in the world from the 2012 Olympic Games in London, to professional sporting events, to Apple Itunes!
1. Localize talents, strategy
2. Coaching and develop employees’ performance
3. Dynamic strategy
4. Emphasis on working environment
5. Listening to employees
Leaders and managers are of Chinese descent.
Thanks to Coca-Cola's global training initiative, theses 'master of Chinese Culture' are still able to employ Coca-Cola's business concept of HRM.
These managers are able to apply cultural materials into their marketing mix.
5 types of coaching employees of Coca-Cola (Veale and Wachtel, 1996)
'For any business to flourish, it is necessary to appreciate cultural differences and to make conscious efforts to adopt the ways of a country' - Lyer, A. (2011),
When Coca-Cola decided to introudce it's products to the Asian market, it had to take into consideration many vital cultural dimensions such as it's name.
They ultimately decided to call it
‘Ke Kou Ke le’ ... which means delicious and happy.
The Chinese logo adopts white letters on red background. Which contrast to the red on white background used in North America.
This is because red is a traditional Chinese festival colour and has special meanings to Chinese people.
These meanings are closely related to the idea of...
Coca-Cola understands that their consumers in different regions have different cultural backgrounds and preferences
Because of these cultural values, the traditional Coca- Cola advert with Santa Claus (mostly used in USA) was changed to two children wearing Chinese costume.
According to Hofstede’s cultural dimensions (Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance and Long-term vs. Short-term goals).
Coca-Cola’s integration into China and the Asian market faced a lot of problems that has arisen from cultural differences.
Coca Cola success is contingent upon an open and honest communicative workplace.
All employees, from the top to the bottom, are valued.
Their thoughts, ideas and culture are valued and respected.
The way a brand is communicated to a consumer, is vital, in convincing them to buy your product.
In a world where providers outnumber consumers, there is a constant war in order to attract a limited amount of customers.
Fanta, a trademark of The Coca-Cola Company, empolyed a marketing campaign in the UK called 'Grab A Taste Of Friday'
As a result, 2nd quarter sales rose 5% (According to Second Quarter Report Coca Cola)
Sprite, another member of the Coca-Cola Family, appealed to the sensitive side of their consumers.
They teamed up with Habitat For Humanity (A non-for-profit organization that builds homes for the less fortunate).
Since their inception in 1888, Coca-Cola has risen to national fame.
The Coca-Cola Company, or as many refers it as... Coke... operates out of three (3) unique business structures.
Bottling Investment Group (BIG)
Objective is to unify the Americas.
Within Coca-Cola Americas, there are two branches:
The North America Group
Latin America Group
Attempts to defy cultural boundaries, and bring its product overseas.
Coca-Cola focuses on markets in Eurasia, Africa, and the Pacific (India, Asia and several other islands).
Coca-Cola operates on two distinct levels
Each branch are allowed to make certain decisions without corporate level direct involvement.
This frees up corporate to focus on long term strategy.
Coca Cola sets a clear vision for the future with emphasis on planet, profit, productivity, portfolio, partners, people and happiness.
For example, in China, people desire jollification, auspicious and family.
Coca-Cola designed a new style of bottles to its Asian sector that includes the words, 'Sweetie' 'Happy-Go-Lucky' and other phrases that triggers 'hao gan' (good-feelings).
In addition, Coca-Cola has introduced 100% 'green' bottles in Shanghai to a culture that prides itself on being environmentally responsible.
The Hofstede Company. The Hofstede Company. Available: http://geert-hofstede.com/united-states.html. Last accessed October 4th 2013.
Hunt, J. W. (1992) 3rd ed. Managing People at Work. McGraw-Hill Companies.
Lyer, A. (2011). Relationships Between Cultural Differences and International Business.
Mullins, L. J. (2002) 6th ed. Management and Organisational Behaviour. Prentice Hall.
The Coca-Cola Company. (2010). Introducing Our Business. Available: http://www.coca-cola.co.uk/about-us/introducing-our-business.html. Last accessed October 2nd 2013.
The Coca-Cola Company. (2010). Coca-Cola History. Available: http://www.worldofcoca-cola.com/coca-colahistory.htm. Last accessed October 2nd 2013.
The Coca-Cola Company. (2010). Coca-Cola History. Available: http://inventors.about.com/od/cstartinventions/a/coca_cola.htm. Last accessed October 2nd 2013.